Bank of Baroda's shares rose as much as 6.8 per cent to Rs 166.9, its biggest percentage gain since October 26 despite posting weak results.
The company had said on Friday that its Q3 profit fell nearly 56 per cent to Rs 112 crore ($17.43 million).
According to Goldman Sachs analysts, fresh stress loan formation has been moderated. They maintain “neutral” rating with a price target of Rs 189.
The investment banking firm expects operating profit to improve gradually as lending growth picks up, but profitability is seen lower than peers.
“We continue to expect moderation in bad loans,’’ say Morgan Stanley analysts. They maintain “equalweight” and a price target of Rs 185.
Trends broadly reflect strengthening core profitability, peak stress, elevated provision needs, Jefferies says, adding that NPL (non-performing loan) recognition has nearly run its course.
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